Pound-to-Euro Rate News Today: Sterling Muted as Markets Turn Positive

April 8, 2025 - Written by David Woodsmith

STORY LINK Pound-to-Euro Rate News Today: Sterling Muted as Markets Turn Positive

Pound Euro Exchange Rate Rangebound despite Risk-On Flows

The Pound traded mostly flat against the Euro on Tuesday despite the day’s upbeat market mood.

At the time of writing, the GBP/EUR exchange rate was trading at around €1.1957, virtually unchanged from Tuesday’s opening levels.

On Tuesday, the Euro (EUR) weakened against most of its counterparts due to a lack of economic data from the Eurozone, leaving the currency's performance largely tied to market sentiment.

As trading conditions turned more positive, the Euro, seen as a safe-haven asset, found it difficult to attract buyers, with investors favouring higher-risk currencies.

Nonetheless, the Euro managed to starve off additional losses during the European trading session, thanks to its inverse relationship with the US Dollar (USD).

Concerns over a potential US recession, fuelled by President Donald Trump's extensive tariffs, contributed to the USD's decline.

Like the Euro, the Pound (GBP) also followed market risk sentiment on Tuesday, as there were no significant UK data releases to influence its movement.


Sterling managed to maintain its position against most safe-haven currencies.

However, despite its growing sensitivity to risk, the GBP fell sharply against its riskier counterparts amid the day's positive market conditions.

Looking ahead to Wednesday, the primary factor influencing the Pound Euro exchange rate will likely remain market's reaction to Donald Trump’s tariffs.

These tariffs have been a significant source of economic uncertainty, affecting both currencies and investor sentiment.

However, another key event to watch is the speech by European Central Bank (ECB) member Piero Cipollone. If Cipollone's remarks contain dovish forward guidance, it could weaken the Euro.

Turning to the Pound, the UK data calendar for Wednesday is notably quiet, with no major economic releases scheduled.

As a result, GBP exchange rates are likely to continue trading in line with overall market sentiment.

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TAGS: Pound Euro Forecasts